Chapter-8 Managing Product, Product Lines, Brands, Packaging Chapter:- 8.

MANAGING PRODUCT, PRODUCT LINES, BRANDS, PACKAGING: A product is anything that can be offered to a market to satisfy a want/need. Products could be: Physical Goods : Car, Soap. Services : Entertainment. Persons : Sachin Tendulkar. Places : Goa. Organizations : Territorial Army. Ideas : Family Planning / Safe Driving. While planning its market offerings, marketer needs to think through five level of products. Core Benefit. Basic Product. Expected Product. Augmented Product. Potential Product.

-

Each level adds more customer value of the five constitute a customer value hierarchy. Core Benefit: Fundamental service/benefit that customer is really buying. Marketers must see themselves as benefit providers. Example: Hotel Guest – Buys rest/sleep. Basic Product: At the second level, marketer has to turn a core benefit into a basic product. Example: Hotel room includes bed/bathroom/table/chair/closet/towels. Expected Product: At the third level, marketer prepares an expected product. Expected product is a set of attributes & conditions that buyers normally expect & agree to when they buy the product. Example: Hotel Guest expects: Clean Bed. Fresh Towels. Working Lights. Quiet Room.

-

-1-

Multi cuisine dining. Product Lines. Example: Lipstick. • They are sold to same customer group. - Product Hierarchy: Each product is related to obtain other products. Product Family: • All product classes that satisfy a core need with reasonable effectiveness. • They fall within given price range. Product Line: • Group of products within product class that are closely related because: • They perform similar functions. Example: Hotel provides: CCTV. Product Class: • Group of products within product family recognized to have certain functional coherence. • Example: Feel good/Look good. In a competitive mkt. Room service. • Example: Toiletries. Augmented benefits may become expected benefits in a competitive market. Packaging Augmented Product: At the 4th level marketer prepares an augmented product that meets customer’s desires beyond expectations. Brands. Personal Valet.Chapter-8 Managing Product. Product hierarchy levels are: Need Family: • Core need that underlines the existing of a product family. -2- . Fresh flowers. Successful marketers add benefits to not only retain customers but to surprise & delight them. competition usually takes place at the product augmentation level. For this normal expectations are exceeded. • Example: Cosmetics. • They are marketed through same channels. Example: Hotel provides: Fresh fruit. Toiletry kit. Stocked Refrigerator. Potential Product: Encompasses future augmentation Possible evolution of product is analysed & provided by marketers to obtain customer’s delight. Product hierarchy lists out levels to identify product from basic needs to particular items that satisfy those needs.

Use: • Consumer Goods. • Non Durable Goods: Tangible goods that are consumed in one/ few uses. Pulsar Personalized Transport Two wheeler Motorized 2-Wheeler Bike Power Motorcycle Bajaj Pulsar Bajaj Pulsar 150 DTSi black Lux Feel Good Toiletries Skin Care Soap Bar Soap Lux Lux Pink grams 100 Product System: • Group of diverse but related items that functions in compatible manner. • Services. Example: Lakme. • Industrial goods. Specialty Goods. • Example: Computer CPU/ keyboard/ monitor/ printer/ UPS. o Emergency Goods. Brand: Name associated with one/ more items in the product line that is used to identify the source/ characteristics of items. Variant/ Stock Keeping Unit (SKU): Distinct unit within a brand/product line that is distinguishable by size/ price/ appearance/ other attribute Example: Frosted lipstick (pink). Example: Need Family Product Family Product Class Product Line Product Type Brand Item/Product Variant/SKU Colgate Feel Good Toiletries Dental Care Toothpaste Gel Toothpaste Colgate Gel Colgate Gel Red 125 grams. Product Mix (Product Assortments): • Set of all products/ items that a particular seller offers for sale to buyers. Product Lines. o Staple Goods.Chapter-8 Managing Product. • Durable Goods. Convenience Goods. Unsought Goods. Example: Soap/ Toothpaste/ Soft drinks. Brands. Example: Tube lipstick. Packaging Product Type: Group of items within a product line that share one of several possible forms of product. Product Classification: • Products classified based on: Durability & Tangibility: • Non Durable Goods. Shopping Goods. o Impulse Goods. -3- .

Packaging • Durable Goods: Tangible goods that survive many uses. Product Lines. -4- . o Example: Kitchen chimney/ Vacuum cleaners/ Insurance.Chapter-8 Managing Product. Example: Hair cut/ Banking. • • Consumer Goods: o Classified on the basis of consumers shopping & habits o Consumer goods could be: Convenience Goods: • Goods that customer purchases frequently/ immediately with min. o Personal Selling / Direct marketing. • Convenience goods could be: o Staple goods: Purchases on regular basis (Toothpaste/ Ketchup). o Customer knows about but doesn’t think of buying. o Impulse goods: Purchases on impulse without any planning/search (chocolates). • Unsought goods require substantial marketing effort in the form of: o Advertising. Example: TV/Refrigerator/ Two wheeler. Unsought Goods: • Goods that either o Customer does not know about or. • Example: Soap/ Cigarettes. on basis such as: Suitability Quality Price Style Specialty Goods: • Goods with unique characteristics/brand identification for which a significant group of buyers are willing to make a special purchasing effort. effort. • Example: Cars/ Two wheelers/ Music systems. Services: Intangible/Inseparable/ variable/ perishable offerings to market. o Emergency goods: Purchases when a need is urgent (umbrellas/raincoats/medicines). Shopping Goods: • Goods that customer in the process of selection/ purchases co. Brands.

Hindustan Lever Limited Product Mix : Width = 4. Total Depth = 74. o Example: Reliance. Consistency: • How many related various product lines are in terms of: o End use or. Toothpaste. Length = 13.Chapter-8 Managing Product. Depth: • Product variants offered of each product in the line. • Example: HLL soaps: Lifebuoy. • Product line length: Total no. Dove. Brands. Average Depth = 5. A company’s product mix has a certain: Width: • How many different product lines the company carries? Length: • Product mix length: Total number of brands in its product. o Distribution channel or. Product line Decisions. Pears. Individual product/brands. • Example: Lux: 3 steps / 2 formulations. Example: HLL offers different product lines such as: Soaps. Detergents. LG electronics. Product Lines. LENGTH Liril. o Production requirement. Lux. Product Mix Decisions (Product Assortment): Product Mix: Set of all products/items that a part sellers offers for sale to buyers. of brands within special product line. Packaging Company’s decision making on product relates to: Product Mix Decisions.7 Soap (Length = 5) Detergent (Length = 4) Shampoo (Length = 2) Toothpaste (Length = 2) Lifebuoy (D = 8) Wheel (D = 4) Clinic (D = 8) Close-Up (D = 4) Lux (D = 6) Rin (D = 4) Sun-Silk (D = 12) Pepsodent (D = 6) Dove (D = 2) Surf (D = 6) Breeze (D = 12) Surf Excel (D = 2) Pears (D = 2) T Depth: 30 T Depth: 16 T Depth: 20 T Depth: 10 Av Depth: 6 Av Depth: 4 Av Depth: 10 Av Depth: 5 -5- . • Hence depth =6 • Average depth for product mix/ product line can be calculated.

analysis consists of: o Sales & profits analysis. o Maintaining. Packaging • • Company’s product strategy is defined along these four dimensions of product mix. Product Lines. Are marketed through same channels. starting point is product line analysis. of each product in their product line. Brands. o High consumer of sales/ profits on few items individual line vulnerability. o Profits. • Example: HLL added toothpaste. In such cases. Add depth by adding product variants. Sales & Profits Analysis: o Percentage of total sales & profits contributed by each item line is tabulated. Product mix planning is important aspect of company’s overall strategy. o Harvesting. • Normally a product line is managed by a group of persons/ one person (product manager) to manage product line. Are sold to the same customer groups. o Divesting. • For this. • Less product consistency. If growth is not possible they may be dropped. • Also they may take decisions on: o Building. o Product line mkt profile/map. • Example: HLL: Surf in sachets. Company can expand business in 4 ways: Widen product mix by adding product lines. • Example: Colgate added Colgate Herbal. Fall within given price range. Depends on thinking of company to either: • Acquire strong reputations in one field. Company may decide to pursue: • More product line consistency. Hence. a particular product. those few contributors need to be monitored carefully. normally done by persons with experience with understanding of market oriented strategic planning. Product Line Analysis: • Product line managers needs to know: o Sales. -6- . o Low contributors are evaluated for growth potential. • Participate in several fields.Chapter-8 Managing Product. Lengthen one/more product lines. • Product Line Decisions: • Product line group of products that are closely related because: They perform a similar function.

Chapter-8 Managing Product. If objective is increased market share: Longer product line length. : Color lasts. • Example: • • • • • Detergents Wheel Rin Surf Surf excel : Differentiators. • Design product line marketing company. If objective is increased profit: Shorter product line. : Soft on hands. Brands. o Product map created using two differentiators at a time as the axes. • Line Pruning. Ariel Price Surf Excel Ariel Green Rin Shakti Nirma Wheel Cleaning Powder o Based on product line analysis decisions to be taken could be on: • Product Line Length (Line Enlargement). o Based on analysis marketer market determinants/ differentiators are identified a product map is created. -7- . • Product line may be enlarged through: Line Stretching. • Company’s objectives also influence product line length. Product line is too long if profit can be reduced by dropping items from product line. Product Line Length (Line Enlargement): Q: What is the optimal product line length? A: Product line is too short if profits can be increased by adding items to product line. Packaging Product Line market profile/Map: o Product line needs to be reviewed in terms of product’s positioning against competitor’s product line. • Line Featuring. • Line Modernization. Product Lines. : Fragrance. Line Filling. o Indicating position of own products & competition. o Product map helps to: • Identify Market Segment. : Cleansing power.

• Example: HLL’s Lifebuoy/ Lux: Dove. Packaging Line Stretching: • Every product line covers a certain /full part of total possible range. Example: Splendor to CD Dawn. Two Way Stretch: • Companies serving middle market may stretch up & down. Positioning as full line manufacturers. • New low end product may cannibalize current product to some extent but this is preferable than move out of competition. • Example: Colgate Herbal/ Maruti swift. • Normally customers are more attentive to relative differences rather than absolute difference. Line Filling: • Product line may be lengthened by adding products /items within lines present range. Upward Stretch: • Moving from low priced product to upper end/ premium products. • Line stretching occurs when a company lengthens its product line beyond its current range. • Example: HLL’s Surf/RIN to Surf Excel/ Wheel. To be leading full line company: Each item should posses a just notable difference.Chapter-8 Managing Product. Reasons could be: • Growth is slow at higher end. Getz. This is called line filling. Keep out competition/ increased competitiveness. Utilization of excess capacity. Increased growth rate. Brands. • Line stretching could be: Downward Stretch: Moving from upper mkt to segment below. • To counter competition. • Reasons could be: Higher margins at premium Product levels. • Initial highly priced product stability. -8- . • Reasons could be: Reaching for incremental profits. Product Lines. • Quality image & stretch decreases brings in volume. Satisfy dealers/distribution who complains of lost sales due to missing products.

• Pruning could be due to: Dead products that depress profits. Example: Intel: Continuously change PC chips. If it is too late : Competition may have already reached. to be considered as Traffic Builders/ Flagship products. new products are in market along with old products. • Example: Bajaj Eliminator.e. Line Feature: • Product line manager may select one/few items in the line to feature i. • Timing of line modernisation is important: If it is too soon : Current product line may get damaged. • This could be done: By a premium marketer with a low price but quality product. Line length Line Modernisation Line Featuring Line Pruning Line Stretch Line Filling Upward Downward Two Way -9- . Change in looks/ style of product. Hero Honda: Splendor to Splendor + • In Line Modernisation. • In Line Enlargement. Maruti: Change in style of 800 cc car. 18 Lakhs. company should concentrate on higher margin products. By a mass marketer to lend prestige to product line.Chapter-8 Managing Product. • Example: Mercedes Benz economy at Rs. Brands. Packaging Line Modernisation: • Product line modernisation refers to: Change in product with technology. • In general: If Demand is slow: Product line is lengthened to increase customer base. Product Lines. Company being short production capacity in this case. If Demand is high: Product line is shortened to earn maximum profits. new products are launched and old are discontinued. Line Pruning: • Product line needs to be reviewed periodically for pruning/ dropping markets.

Brand identifies seller/maker. Brands. • Example: Mercedes: Expensive. • Attributes need to be translated into final/emotional benefits.Chapter-8 Managing Product. Product Lines. Example: Mercedes: High Performance /safety/ prestige. Personality: Brand may project certain personality If brand was an animal what animal comes or what object? or which personality? Example: Mercedes: No Nonsense Boss King of the Jungle (lion) Place User: Brand suggests kind of consumer who buys/uses product. The company may use one/more of these attributes to advertise the car. Users are those who respect/conform to product’s values/ culture /personality. This is to meaning to consumers. • Essentially. Culture: Brand may represent certain culture. • Example: Expensive: Mercedes helps me feel important/admired.10 - . • A brand is essentially a seller’s promise to consistently deliver what it stands for to the buyer. Values: Brand makes a statement about producer’s values. Well Engineered. “Engineered like no other car in the world”. High Prestige. seller is granted exclusive rights to the use of the brand name in perpetuity i.e. they buy benefits. Packaging Brand Decisions: • A Brand is a name/ term/ sign/symbol design or combination of them intended to identify the good/services/ ideas of one seller /group of sellers & to differentiate them from these of competition. Brand marketer needs to identify customer groups who are seeking these values. Example: Mercedes: Chief Executives. High Resale Value. Durable/Fast/Safe. • It can be a name/ trademark/logo/symbol. If the audience can visualize all 6 dimensions of a brand then the brand is DEEP otherwise it is SHALLOW. • A Brand may convey up to 6 levels of meaning: Attribute: • A brand first brings to mind certain attribute/features. there is no expiry date. . Benefits: • Customer don’t buy attributes. • As per law. Example: Mercedes: German efficiency/precision.

In such situations. Company may be able to charge a premium to customer. they are selected over others. buyers are interested in benefits.e. Attributes may become less important/ less valuable later on. • Some brands may have fairly high degree of brand awareness measured by brand recall/ brand recognition. More trade coverage with distributors/ retailers. Other aspects listed above. • Some brands enjoy a high degree of brands preference i. Normally.Chapter-8 Managing Product. reasons could be: Buyers are less interested in attribute. without buying a substitute product.e. Attribute may be copied by competitor. • Strong mental/ emotional association. Promoting on benefits may also be risky due to last two reasons in the long run. Normally Attributes may not be the right level. Value the brand (Brand preference). if the brand is not available at one store they would go to another store for it. Product Lines.11 - . but it can be learned through: Price premium that Brand commands. Brand Equity is difficult to measure. it is better to promote brand based on: Values. • Some brand may be unknown to most buyers in the market place.e. Denoted to the Brand (Brand loyalty). High Brand equity provides competitive advantage in the form of: Reduced market costs due to high customer awareness & loyalty. Culture. Hence. • Perceived brand quality. Brands. Personality. These are more enduring & define the essence of a brand. Brand equity is related to: • Degree of Brand recall /recognition. Packaging Given the 6 levels: Brand meaning marketer must decide which level to promote. May help defend against price competition . • Few brands have high degree of brand acceptability i. most customer could not resist buying them. • Strong channel relationship. Brand Equity: (Brand Power in Market Place): Brands vary in the amount of power/value they have in the market place. Extra volume brand generates over that of an augmented brand. Brand extension may help increase profits by passing credibility of brand to other products. • Percentage(%) of customer who are: Satisfied with brand (Brand acceptance). brand tied to an attribute may get damaged. • Few brands command brand loyalty i.

Example: Maggi Noodles helped Foods Specialty of India build image for Maggi Ketchup sauce. Example: Videocon /Kenstar: (premium range). . Brands. Sauce DIFF. Example: HLL’s Lux. Dx BRAND EXTENSION E. o Company’s name combined with individual product’s name. Product Lines. Packaging Example: Head & Shoulders Vs Clinic All Clear (when clinic all clear reduced its price H& S didn't reduced its price because of brand equity).g. Titan.12 - . Brand Name should be: o Distinctive o Easy to pronounce/ recognize/ remember o Should suggest something about pdt’s benefits /pdt’s qualities such as color/action o Should not carry poor meaning in multiple languages Brand Strategy Decision: PRODUCT LINE SAME DIFF. an altogether new product. Esteem Lx. Example: Kellogg’s Cornflakes. Maggi Noodles. SAME LINE EXTENSION BRAND E. o Blanket family name for all products. o Separate family names for all products. Brand Name Decision: To select Brand name. Dove. MULTI BRANDING STRATEGY NEW BRAND E.Chapter-8 Managing Product. Example: Philips. Tanishq.g. Tata. company may follow any of the four strategies: o Individual Brand names.g. Vx.

• However each brand would need to be monitored closely for market share/ profitability. • For this. Sauces. . • Lux.Chapter-8 Managing Product. Majority of new products are line extension. Filling-in (Change in package size: Surf in sachets). • Maruti Esteem VXI/LXI.13 - . New Brands: • New brand name for a new product category. Protects major brands thru flanking /flanker products. Multi Brands: Multi brands in same product category Example: HLL’s Soaps: • Lifebuoy. Lifestyle/Sports wear. Brand Extension: (Maturity stage of Brands): Same brand name is extended to new product category. Lux chocolate). Brand should not get diluted as a result of the extension. Packaging Line Extension: Existing brand name extended to new sizes flavors in existing product category. Brands. Example: Tata’s came up with a new brand name TITAN for watches Tanishq for jewellery because they didn’t want the name of TATA to get diluted. Line extension may be: Innovative (Ice cream flavors. • Example: Tata’s • Titan wrist watches. Me too (To increase competitiveness). Compatibility of brand to new product category should be checked. Park Avenue Clothes. Example: Maggi Noodles. long term viability of product/ brand may need to be planned out in advance. Brand dilution may occur if a brand (in consumer’s mind) is no longer associated with a specific product/ group of products. Wills Cigarettes. • Pears. Toiletries (Shaving creams etc). Product Lines. • Tanishq jewellery. • Moti. • This strategy helps company to: Look up for more distribution / return shelf space. Example: Ice cream: New flavors.

• Example: o Hero Honda. o Joint venture co-branding. o Multiple branding.Hoodi Baba. Competition. market dynamics change.Chapter-8 Managing Product. Mkt Evolution. • Co-branding could be: o Components co-branding. Example: Zenith/Compaq PC with Intel Inside. Product Lines. a brand may need to be repositioned. • As a result. Mix Width Line Length Pdt Mix Strategy Brand Depth Consistency Line Stretch Pdt Line Length Line Modernisation PRODUCT STRATEGIES Downward Upward Two Way Line Filling Line Strategy Line Featuring Line Pruning Line Extension Brand Extension Brand Strategy Multi Brands New Brands Co-Branding Brand Repositioning . Packaging Co-Branding (Dual Branding): • Two/more brands are combined in a product offering. Brands. Example: Mobile Communication. Example: Bajaj Caliber. o Swaraj Majda. Example: Mahindra British Telecom. Brand Repositioning: • Over a period of time. • Repositioning due to: Decrease sales of Brand. o Wipro Spectramind.14 - .

Chapter-8 Managing Product./ brand recognition this is being understood by most companies. • Product visibility. • Dispensing method. self service is growing in importance hence good packaging is important in order to: • Attract Attention. Product Lines. consumers are willing to pay a little more for convenience/ appearance/ dependability/ prestige of better packaging. • Container/wrapper is called the Package. • These are o Self Service: In many outlets today. o Producer: Promotional value. Steps involved in developing a suitable packaging are: o Establish Packaging concept: This defines what purpose is primarily served by the package Purposes could be: • Product protection. Packaging Packaging: • Packaging includes the activities of designing a product (the container/wrapper for a product).15 - . • Material. o Innovation packaging: Innovative packaging can bring benefits to consumer & profits to companies. • Make favorable overall impression. . Brands. o Secondary: Cardboard box. • Package could be: o Primary: Old spice after shave bottle (P&G). • Describe product/ product feature. Other packaging elements should be finalized these could be: • Size. • Suggest product/ company quality. • Various factors have contributed to packaging’s increasing used as a marketing tool. • • Developing an effective packaging for a product requires several decisions. o Shipping: Corrugated box of 6 dozen Old Spice • Well designed packages created for: o Consumer: Convenience value. • Shape. • Create consumer’s confidence. o Consumer Affluence: With increase affluence. Example: Pidilite: Fevistick. o Company Brand/ Image: Well designed packaging has the power of instant co.

while the written material cover is the Labeling. • Labeling is a subset of packaging. Brand mark Package once designed needs to be tested: Test could be: o Engineering test: To ensure package stands up to normal/ Stress conditions. Manufacturing date. .16 - . Dealers should find package attractive. Percentage label (% of important ingredients). Colors are harmonious. o Visual test: Script/text is legible. o Consumer test: Consumer should give positive response. • Final package created based on above process Labeling: • The silver foil in dairy milk chocolate is the Package. Text. • Labels could range from a single tag attached to a product. • Current consumer law requires label to convey: Product price.Chapter-8 Managing Product. to an elaborately designed graphic that is part of packaging. Grade product. Grade (if applicable). o Dealer test: Dealers to be able to handle easily. Brands. Describe product. Promote product. • Function of Label could be: Identify product. Product Lines. Packaging • • • • • Colors. Batch Number. • Labels are mandatory for package products.

Sign up to vote on this title
UsefulNot useful